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Sep 5
Starbucks Lands Apple iTunes Partnership

Starbucks (SBUX) has been trying to brand itself beyond its coffee by including various forms of entertainment within the store. They may have taken a big step forward in that direction by securing a deal with Apple iTunes (AAPL) for wireless access to its online store.

Along with the new iPod Touch and iPhone, introduced by Steve Jobs, and which can be used for the service, Starbucks also announced the new partnership in San Francisco Wednesday.

"I've said for years that an unexploited asset was this wireless network," Starbucks Chairman Howard Schultz said in an interview. "The big payoff is the sense of discovery that will exist."

As I wrote on another blog: "The new service will roll out on October 2, and will begin in 600 stores in Seattle and New York. In November it'll be introduced into the San Francisco area in 350 stores. By the end next year it's expected it'll be in most U.S. Starbucks stores."

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The price of the songs acquired in Starbucks will stay the same as the traditional iTunes store, which is 99 cents a song.

Schultz added they've been negotiating this deal for about two years with Apple. The two companies will share revenue generated within the stores, but terms of the agreement weren't released.

The service will run on the in-store T-Mobile HotSpot Wi-Fi network.

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